US bank seeks buyer as confidence crisis spreads

Another US bank is seeking a financial lifeline as the crisis of confidence in the country’s banking sector continues.

PacWest said it was considering its options and had been approached by potential buyers and investors, causing its share price to plummet.

Confidence in the banking industry – particularly in small and medium-sized lenders – has been shaken by a series of failures.

Some banks have run into trouble due to steadily rising interest rates.

Central banks have raised borrowing costs to combat rising prices or inflation.

On Wednesday, the US Federal Reserve raised interest rates again, this time to 5.25%, the highest since 2007.

Unlike competitors that have collapsed in recent weeks, PacWest said it didn’t see a large number of customers rushing to withdraw their funds.

But Thursday night it admitted it was considering its options after being “approached by several potential partners and investors.” “Conversations are ongoing,” they said.

The statement caused PacWest’s share price to fall, and investors feared that this will be “the next domino to fall,” according to Hargreaves Lansdown analyst Susannah Streeter.

Its shares have lost almost 90% of their value since the US regional banking crisis began in March with the collapse of Silicon Valley Bank and Signature Bank.